Saudi Arabia’s SIF wealth fund to buy 49% of hotel chain Rocco Forte
Founders Rocco Forte and his sister, Olga Polizzi, will remain as executive chair and deputy chair, respectively
04 December 2023 - 17:00
byYadarisa Shabong and Elisa Anzolin
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Sir Rocco Forte speaks during a "Leave Means Leave" rally in London, Britain January 17, 2019. REUTERSSIMON DAWSON
Saudi Arabia’s PIF sovereign wealth fund will buy a 49% stake in luxury hotel group Rocco Forte Hotels and help to support its expansion, the owner of Britain's Balmoral hotel said on Monday.
PIF’s purchase gives the hotel group an enterprise value of about £1.4bn, one source close to the matter said on Monday, confirming a report in the Financial Times.
Founders Rocco Forte and his sister, Olga Polizzi, will remain as executive chair and deputy chair, respectively, it said, adding that the Forte family would retain majority ownership and control of the group, which currently has 14 hotels.
“PIF is an excellent partner for us going forward ...They share the same vision for the brand and the future strategy of the group with the same ambition to take a long-term view,” chair Forte said in a statement.
A spokesperson for Rocco Forte Hotels declined to confirm the size of PIF's stake.
Rocco Forte Hotels, founded in 1996, operates across Italy, Britain, Germany, Belgium and Russia and has 20 private villas in addition to its hotels. Another three hotels are expected to open in the next two years in Italy — two in Milan and one in Sardinia.
Italian investor CDPE Investimenti will sell its entire shareholding as part of the deal. CDPE, which owned a 23% stake in Rocco Forte Hotels, is owned by Italy's state-backed fund CDP. It invested €80m in the hotel group in 2015.
Saudi Arabia branches out
Saudi Arabia is investing in a broad range of sectors as part of its Vision 2030 plan that aims to wean the country off its dependence on oil.
“Our investment in Rocco Forte Hotels reflects PIF’s confidence in both the commercial opportunity and strength of the international hospitality and tourism industries,” Public Investment Fund’s Turqi Alnowaiser said in a statement.
PIF did not immediately respond to a request for more detail on the deal.
Rocco Forte, which was advised by Rothschild, reported revenue of about £300m last financial year, with a core profit of about £60m, according to a source.
Forte, a Briton with Italian roots, launched the hotels group after the company his father founded was taken over in 1996 by British media and leisure group Granada, after a high-profile takeover battle.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Saudi Arabia’s SIF wealth fund to buy 49% of hotel chain Rocco Forte
Founders Rocco Forte and his sister, Olga Polizzi, will remain as executive chair and deputy chair, respectively
Saudi Arabia’s PIF sovereign wealth fund will buy a 49% stake in luxury hotel group Rocco Forte Hotels and help to support its expansion, the owner of Britain's Balmoral hotel said on Monday.
PIF’s purchase gives the hotel group an enterprise value of about £1.4bn, one source close to the matter said on Monday, confirming a report in the Financial Times.
Founders Rocco Forte and his sister, Olga Polizzi, will remain as executive chair and deputy chair, respectively, it said, adding that the Forte family would retain majority ownership and control of the group, which currently has 14 hotels.
“PIF is an excellent partner for us going forward ...They share the same vision for the brand and the future strategy of the group with the same ambition to take a long-term view,” chair Forte said in a statement.
A spokesperson for Rocco Forte Hotels declined to confirm the size of PIF's stake.
Rocco Forte Hotels, founded in 1996, operates across Italy, Britain, Germany, Belgium and Russia and has 20 private villas in addition to its hotels. Another three hotels are expected to open in the next two years in Italy — two in Milan and one in Sardinia.
Italian investor CDPE Investimenti will sell its entire shareholding as part of the deal. CDPE, which owned a 23% stake in Rocco Forte Hotels, is owned by Italy's state-backed fund CDP. It invested €80m in the hotel group in 2015.
Saudi Arabia branches out
Saudi Arabia is investing in a broad range of sectors as part of its Vision 2030 plan that aims to wean the country off its dependence on oil.
“Our investment in Rocco Forte Hotels reflects PIF’s confidence in both the commercial opportunity and strength of the international hospitality and tourism industries,” Public Investment Fund’s Turqi Alnowaiser said in a statement.
PIF did not immediately respond to a request for more detail on the deal.
Rocco Forte, which was advised by Rothschild, reported revenue of about £300m last financial year, with a core profit of about £60m, according to a source.
Forte, a Briton with Italian roots, launched the hotels group after the company his father founded was taken over in 1996 by British media and leisure group Granada, after a high-profile takeover battle.
Reuters
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